Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in an English auction and the auctioneer sets the opening bid $6 million and increases the bids by $0.25 million until no one
submits a higher bid, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #5; $9.5 million
B) #3; $10 million
C) #3; $9.75 million
D) #5; $9.25 million
C) #3; $9.75 million
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In the 1980s, the U.S. had recessions in ________ and __________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a prerequisite for sustainable economic growth?
A) Private foreign investment B) A literate populace C) Aid provided by international agencies D) An easy monetary policy E) An abundance of natural resources
If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, the loss of consumer surplus due to this decision is
A) J + K. B) K - G. C) G + H. D) H + K.
Because the short-run average total cost curve slopes downward for an information product, the firm experiences
A) a downward sloping marginal cost curve. B) a downward sloping average variable cost curve. C) short-run economies of operation. D) long-run diseconomies of scale.